How to Calculate a Tip and Split the Bill

A tip is a percentage of the bill, so the calculation is a plain percentage question with one extra step if you are splitting the total.

The formula

Tip        = bill × (tip % ÷ 100)
Total      = bill + tip
Per person = total ÷ number of people

Example

The bill is 86.40, you want to leave 18%, and two people are splitting it.

• Tip: 86.40 × 0.18 = 15.552, which rounds to 15.55
• Total: 86.40 + 15.552 = 101.952, which rounds to 101.95
• Each person: 101.952 ÷ 2 = 50.976, which rounds to 50.98

Keep the extra decimals until the last step. Rounding the tip first and then rounding again can leave you a cent out.

Mental shortcuts

• 10%: move the decimal point one place to the left. 10% of 86.40 is 8.64.
• 15%: find 10%, then add half of it. 8.64 + 4.32 = 12.96.
• 20%: double 10%. 8.64 × 2 = 17.28.

These give you a close figure without a calculator, and you can round the bill to a friendly number first.

Tip on the pre-tax amount?

Customs differ. Some people calculate the tip on the bill before tax, others on the total. Either is acceptable, but be consistent, and check whether a service charge has already been added.

Customs vary

How much to tip, and whether to tip at all, differs widely between countries and even between types of venue. In some places a service charge is included in the price, and in others tipping is not expected. If you are unsure, check local guidance.

Common mistakes

• Tipping on top of an included service charge without meaning to.
• Dividing the bill by the number of people and then adding the tip to each, then forgetting to check the total.
• Rounding too early.

The tip calculator splits the bill and shows the tip per person.

Try it yourself

1. What is a 15% tip on a 64 bill, and what is the total?
2. A 120 bill has a 20% tip and four people split it evenly. What does each person pay?
3. What is 20% of 47.50?

Answers: (1) 9.60 tip, 73.60 total; (2) 36 each (144 ÷ 4); (3) 9.50.